GITNUXREPORT 2025

Auto Repossession Statistics

Auto repossession rates declined slightly but remain a significant financial industry issue.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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The states with the highest repossession rates are Mississippi, Louisiana, and Alabama

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Repossession rates are highest among borrowers aged 18-25, at approximately 3%

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70% of repossessions happen in urban areas, where unemployment rates tend to be higher

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Licensed auto repossession agents number over 15,000 across the U.S., indicating a significant industry presence

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45% of auto repossessions happen in the southern U.S., with Texas and Florida leading the statistics

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The average auto repossession cost for lenders is approximately $700 per vehicle

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The subprime auto loan segment makes up about 25% of the total auto loan market

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The average auto loan debt at the time of repossession is approximately $10,000

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The average loss for lenders on repossessed vehicles is roughly $1,500 per vehicle

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The total value of repossessed vehicles in the U.S. exceeds $20 billion annually, representing a substantial financial impact on lenders

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Around 55% of repossessed vehicles are auctioned within three months of repossession

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In 2021, about 22% of repossessed vehicles were recovered by borrowers before auction

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Only about 40% of repossessed vehicles are recovered by owners or lenders, the rest are auctioned or scrapped

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The share of repossessed vehicles that are classified as "luxury vehicles" increased by 15% over the last five years

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The average recovery rate on repossessed vehicles (percentage recovered through resale) is approximately 65%

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The average age of repossessed vehicles is around 5 years old

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Approximately 60% of repossessed vehicles are sold at public auction, while the rest are sold through dealer auctions or directly to salvage buyers

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The average age of a repossessed vehicle at the time of sale is around 4.8 years, indicating relatively recent models are often targeted

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Approximately 0.7% of auto loans in the U.S. resulted in repossession in 2022

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The overall auto repossession rate decreased by 3% from 2021 to 2022

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In 2021, around 1.2 million vehicles were repossessed in the United States

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Consumers with subprime credit are three times more likely to face auto repossession than prime borrowers

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The percentage of repossessions that occur within the first year of loan origination is around 30%

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Auto repossessions increase by approximately 12% during economic downturns

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In 2020, vehicle repossessions rose by 7% compared to 2019, due to COVID-19 economic impacts

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Approximately 40% of borrowers who face repossession are behind on more than three payments

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The average duration of a loan before repossession occurs is around 9 to 11 months

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About 65% of borrowers who experience repossession do not reaffirm their debt or settle, leading to debt collection actions

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Black consumers are 2.5 times more likely to face auto repossession than white consumers, according to recent reports

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The average time between missed payments and repossession is about 6 months

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For every 100 auto loans, approximately 1.4 result in repossession

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Auto repossession rates have decreased by about 10% over the past decade owing to improved lending standards

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Approximately 15% of borrowers default on their auto loans within the first 12 months, leading to increased repossession risks

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The most common method of repossession is through voluntary surrender by the borrower, accounting for roughly 40% of cases

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The repossession process usually takes between 30 and 45 days from the missed payment notice to seizure

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During economic downturns, repossession rate spikes have been observed as high as 25% of unpaid auto loans

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Repossession impacts credit scores significantly, often lowering a borrower’s score by 80-100 points

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In 2023, the repossession rate in the U.S. was approximately 0.9%, slightly higher than in previous years

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In surveys, over 65% of consumers facing repossession reported being unaware of their options to avoid seizure, such as loan restructuring

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The most common reason for auto repossession is missed payments, accounting for roughly 85% of cases

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The primary drivers of auto repossession are unemployment, high debt-to-income ratio, and vehicle depreciation, as identified by industry studies

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Key Highlights

Approximately 0.7% of auto loans in the U.S. resulted in repossession in 2022
The overall auto repossession rate decreased by 3% from 2021 to 2022
In 2021, around 1.2 million vehicles were repossessed in the United States
Consumers with subprime credit are three times more likely to face auto repossession than prime borrowers
The average auto repossession cost for lenders is approximately $700 per vehicle
The percentage of repossessions that occur within the first year of loan origination is around 30%
Around 55% of repossessed vehicles are auctioned within three months of repossession
The most common reason for auto repossession is missed payments, accounting for roughly 85% of cases
Auto repossessions increase by approximately 12% during economic downturns
The subprime auto loan segment makes up about 25% of the total auto loan market
In 2020, vehicle repossessions rose by 7% compared to 2019, due to COVID-19 economic impacts
Approximately 40% of borrowers who face repossession are behind on more than three payments
The states with the highest repossession rates are Mississippi, Louisiana, and Alabama

Auto repossession, a costly and often overlooked consequence of missed payments, affected nearly 1% of auto loans in the U.S. in 2022 and reveals stark disparities across age, race, and region, highlighting the complex interplay between economic pressures and consumer debt.

Demographics and Geographic Distribution

The states with the highest repossession rates are Mississippi, Louisiana, and Alabama
Repossession rates are highest among borrowers aged 18-25, at approximately 3%
70% of repossessions happen in urban areas, where unemployment rates tend to be higher
Licensed auto repossession agents number over 15,000 across the U.S., indicating a significant industry presence
45% of auto repossessions happen in the southern U.S., with Texas and Florida leading the statistics

Demographics and Geographic Distribution Interpretation

Auto repossession rates reveal a sobering regional and demographic pattern—underscoring how economic stresses in southern urban centers and among younger drivers are fueling a thriving industry of over 15,000 licensed agents, with Mississippi, Louisiana, and Alabama bearing the heaviest toll.

Financial Impact on Lenders and Borrowers

The average auto repossession cost for lenders is approximately $700 per vehicle
The subprime auto loan segment makes up about 25% of the total auto loan market
The average auto loan debt at the time of repossession is approximately $10,000
The average loss for lenders on repossessed vehicles is roughly $1,500 per vehicle
The total value of repossessed vehicles in the U.S. exceeds $20 billion annually, representing a substantial financial impact on lenders

Financial Impact on Lenders and Borrowers Interpretation

With vehicles averaging around $10,000 in debt and repossession costs of $700, the U.S. auto finance industry faces a $1,500 loss per vehicle and over $20 billion annually, revealing that even in repossession, subprime borrowers are driving profits—and losses—in unpredictable directions.

Repossessed Vehicles Characteristics and Outcomes

Around 55% of repossessed vehicles are auctioned within three months of repossession
In 2021, about 22% of repossessed vehicles were recovered by borrowers before auction
Only about 40% of repossessed vehicles are recovered by owners or lenders, the rest are auctioned or scrapped
The share of repossessed vehicles that are classified as "luxury vehicles" increased by 15% over the last five years
The average recovery rate on repossessed vehicles (percentage recovered through resale) is approximately 65%
The average age of repossessed vehicles is around 5 years old
Approximately 60% of repossessed vehicles are sold at public auction, while the rest are sold through dealer auctions or directly to salvage buyers
The average age of a repossessed vehicle at the time of sale is around 4.8 years, indicating relatively recent models are often targeted

Repossessed Vehicles Characteristics and Outcomes Interpretation

With 55% of repossessed vehicles auctioned within three months and a notable 15% rise in luxury cars among repossessions over five years, the grim reality emerges: borrowers’ hopes for quick recovery often fade into auction blocks, leaving only about 40% truly reclaimed—highlighting a market where recent, upscale vehicles swiftly transition from ownership to profit margins.

Repossessions Rates and Trends

Approximately 0.7% of auto loans in the U.S. resulted in repossession in 2022
The overall auto repossession rate decreased by 3% from 2021 to 2022
In 2021, around 1.2 million vehicles were repossessed in the United States
Consumers with subprime credit are three times more likely to face auto repossession than prime borrowers
The percentage of repossessions that occur within the first year of loan origination is around 30%
Auto repossessions increase by approximately 12% during economic downturns
In 2020, vehicle repossessions rose by 7% compared to 2019, due to COVID-19 economic impacts
Approximately 40% of borrowers who face repossession are behind on more than three payments
The average duration of a loan before repossession occurs is around 9 to 11 months
About 65% of borrowers who experience repossession do not reaffirm their debt or settle, leading to debt collection actions
Black consumers are 2.5 times more likely to face auto repossession than white consumers, according to recent reports
The average time between missed payments and repossession is about 6 months
For every 100 auto loans, approximately 1.4 result in repossession
Auto repossession rates have decreased by about 10% over the past decade owing to improved lending standards
Approximately 15% of borrowers default on their auto loans within the first 12 months, leading to increased repossession risks
The most common method of repossession is through voluntary surrender by the borrower, accounting for roughly 40% of cases
The repossession process usually takes between 30 and 45 days from the missed payment notice to seizure
During economic downturns, repossession rate spikes have been observed as high as 25% of unpaid auto loans
Repossession impacts credit scores significantly, often lowering a borrower’s score by 80-100 points
In 2023, the repossession rate in the U.S. was approximately 0.9%, slightly higher than in previous years
In surveys, over 65% of consumers facing repossession reported being unaware of their options to avoid seizure, such as loan restructuring

Repossessions Rates and Trends Interpretation

While the auto repossession rate remains modest at around 0.7%, the stark disparities—especially affecting subprime and Black consumers—highlight that when economic tides turn and payments lag beyond six months, it’s often a swift slide from financial hardship to vehicle loss, underscoring the critical need for better consumer awareness and equitable lending practices.

Underlying Causes and Contributing Factors

The most common reason for auto repossession is missed payments, accounting for roughly 85% of cases
The primary drivers of auto repossession are unemployment, high debt-to-income ratio, and vehicle depreciation, as identified by industry studies

Underlying Causes and Contributing Factors Interpretation

With missed payments accounting for 85% of auto repossessions, it’s clear that financial instability—fueled by unemployment, soaring debt, and depreciating vehicles—continues to drive many into a repossession crossroads where the key to keeping their ride lies in steady income and smarter borrowing.